Under the regulatory guidance of the Securities and Exchange Commission of Pakistan (SECP), the insurance industry in Pakistan is making significant strides by introducing Digital Auto Insurance Repository leading towards digitalization and data-driven decision-making. This transformative journey is marked by the establishment of a centralized Auto Insurance Repository, supported by the Central Depository Company of Pakistan (CDC). This initiative is expected to fundamentally change the landscape of auto insurance underwriting across the country.
The signing of a Memorandum of Understanding (MoU) between the CDC and nine prominent insurance companies marks a major milestone in this digital evolution. The ceremony, held at the CDC House in Karachi on July 18, 2024, was attended by industry leaders and stakeholders. The companies participating in this groundbreaking venture include Jubilee General Insurance, Habib Insurance, TPL Insurance, IGI General Insurance, Adamjee Insurance, Atlas Insurance, Salaam Takaful, Premier Insurance, and Asia Insurance. This collaboration signifies a united effort to embrace technological advancements and enhance operational efficiency.
The centralized Auto Insurance Repository is poised to be a game-changer for the industry, serving as a pivotal platform for further digital transformation. It aims to streamline the process of accessing crucial information, improve underwriting accuracy, and enhance risk management practices. By providing insurers with comprehensive data and insights, the repository will enable more informed business decisions before issuing policies, ultimately benefiting both insurers and policyholders.
This initiative aligns with the broader objectives of Ease of Doing Business (EODB) and consumer protection, promising to introduce greater transparency, speed, and convenience to the industry. The repository is expected to simplify operations, reduce administrative burdens, and foster a more competitive market environment, thereby driving growth and innovation.
SECP Chairman Akif Saeed, the event’s chief guest, reaffirmed his commitment to supporting the insurance sector’s growth and development, in line with global trends towards digitalization and data centralization. He emphasized the importance of adopting cutting-edge technologies to stay competitive in an increasingly digital world.
Badiuddin Akber, CEO of CDC, highlighted the company’s state-of-the-art technological platform and extensive expertise in managing similar projects. He expressed confidence that the auto part finder Auto Insurance Repository will leverage CDC’s capabilities to deliver seamless and efficient services to the industry.
Aamir Khan, Commissioner SECP – Insurance Division, urged insurance companies to take the lead in embracing digitalization, assuring them of SECP’s full support in their modernization efforts. He emphasized that forward-thinking companies that adopt data-driven strategies will be well-positioned to thrive in the evolving insurance landscape.
